Tds on salary (return filing)

TDS / TCS 1728 views 3 replies

Prateek Agarwal

Sr. Executive - Finance & Accounts

1732 Points Posted on 10 May 2012

Hello everyone,

Have got a query!

While filing TDS return for Salary, i have stumbled upon a hurdle.

Since tax is to be deducted on PAYMENT basis for salaries, in general practice we couldn't deduct tax every month. Although the total tax to be deducted has been deducted as at the last date of the year.

In TDS return, what if I show that tax has not been deducted every month, but actually been deducted as and when suited?

Will there be any default on our part even though no deficit tax has been deducted and paid as well?

Awaiting your replies.

Thanks in advance

Replies (3)

Ramesh Uplana

Internal Auditor Manager

25 Points Posted on 10 May 2012

no problem u just show in March Ending month

Ayesha Banu A

105 Points Posted on 10 May 2012

Hi Prateek,

You can include the transaction in Q4 & can file TDS Return.

If you show that as you have deducted TDS on monthly basis, you need to pay interest on delayed remittance from the date of deduction till the date of payment @ 1.5% pm or part there of.

There will not be any default if you deduct & remit the TDS at the year end. You can also issue form 16 with Tax payable, subject to the employees will end up with paying interest on such liability.

Prateek Agarwal

Sr. Executive - Finance & Accounts

1732 Points Posted on 10 May 2012

Hi Ayesha,

Thanks for your reply.

But do we really have to pay interest for delayed deduction or delayed remittance?

There is no delayed remittance since there is no default in payment of TDS to the treasury. In fact, there is delayed deduction. so this default can be highlighted by NSDL??